Tuesday, June 25, 2019
Finance
 « Bank Loans

Loan for Pensioners

Loans are worthwhile when someone is in immediate need of financial assistance. In earlier days senior citizens were usually deprived of regular loans because of their inability to show proof of a regular income. But the scenario has been changed now and banks are taking care of economical independence of retired individuals by offering a unique pension loan. 

Pension loans are of two types. Pensioners loan and Mortgage loan for senior citizen. Through Pensioners loan, a senior citizen can take a loan against their Pension,  fixed deposits, National Savings Certificates, Kisan Vikas Patras, Life Insurance Polices and RBI Relief Bonds etc where mortgage loan demands collateral in the form of an asset such as a home or land. The maximum age limit of a pensioner to apply for a loan is 70. 

The main advantage of this loan is its low interest rate. The maximum amount of loan avail may varies from bank to bank and depends upon individuals repayment capacity. This loan shall be disbursed through Savings Bank A/c other than the account in which your pension is credited every month. Loan prepayment charges and processing fees are free. These loans can be prepaid any time without any penalty.

Documents required for Pension Loans are:

  1. Proof of Identity ie; Passport Copy or Voters ID Card or Driving License etc.

  2. Address Proof ie; Ration card, Telephone or Electricity Bill or Passport Copy etc.

  3. Last 6 months Bank Statement or Bank Passbook.

  4. Proof of Retirement and the organization last worked for, including the Pension Slip.

Updated on : 21/1/2017

Banks Offering Pension Loans: